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Financial data for Beaker Company for last year appear below: Beaker Company Statements of Financial Position Begirming Balance Ending Bal ance Assets Accounts receivable Inventory
Financial data for Beaker Company for last year appear below: Beaker Company Statements of Financial Position Begirming Balance Ending Bal ance Assets Accounts receivable Inventory Plant and equipment (net) Investment in Cedar Company Land undeveloped) Total assets 252, 000 165, 000 298, 000 470, 000 287, 000 410, 000 $1, 882, 000 $197, 853 189, 000 236, 000 445, 000 311, 000 410, 000 $1, 788, 853 Liabilities and owners' equity: Accounts payable Long-term debt Owners equity Total liabilities and owners' equity $227, 000 860, 000 795, 000 $1, 882, 000 $149, 000 860, 000 779, 853 $1, 788, 853 Beaker Company Income Statement Sales Less operating expenses Net operating income Less interest and taxes $2, 270, 000 1, 884, 100 385, 900 Interest expense lax expense $104, 700 127, 347 232, 047 $ 153, 853 Net income The company paid dividends of $169,000 last year. The "Investment in Cedar Company" on the statement of financial position represents an investment in the stock of another company. Required a. Compute the company's margin, turnover, and return on investment for last year. b, The Board of Directors of Beaker Company has set a minimum required return of 30%, what was the company's residual income last year
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